Costa Rica's landlord and tenant law is PRO-TENANT.

Coastal properties of Costa Rica Houses for sale Oceanview Rent: Can tenant and landlord freely agree to rent in Costa Rica? copany

Initially, rents can be negotiated freely between landlord and tenant. In order to increase rent, the parties must agree to increase the annual rent in the agreement. If no agreement exists, the landlord can fill in the claim to increase the rent on an annual basis.

The annual increase for housing cannot be higher than 15% of the fixed rent. In order to increase the inflation of the country to more than 15 percent, it must be above 15 percent and the increase in rents must be based on a certification of State inflation.

Where housing rent is agreed in US dollars or other foreign currency, there is no annual increase. Only in cases of agreements in colones, the Costa Rican currency, is a rental increase allowed.

Deposits

Security deposits to cover pending rental payments or any other tenant obligations may be freely agreed between the parties without legal maximum. In practice, however, landlords apply as a security deposit for a month. In contrast, advance rental payments are limited to only one month's rent (an exception applies to social housing).

What are the rights of landlords and landlords in Costa Rica, especially regarding contract duration and expulsion?

The minimum lease agreement is three years in Costa Rica. If the tenant wants to terminate the lease before expiry of this time, he must send a three months' notice to the landlord, unless otherwise agreed by the parties. The Parties may agree to a penalty for the tenant's early termination.

If the contract expires, it will be renewed automatically for three more years, unless the owner notifies the tenant three months in advance and says he will no longer renew the agreement.

No indefinite lease term is permitted.

How effective is the legal system in Costa Rica?

It should not take more than a year to evict. The collection of unpaid rents can be attempted in the same process. In practice it is usually difficult to collect unpaid rents, since the tenant has no assets or money to be attached.

Legislation

Non-payment EVICTION OF RENT

Duration until process service is completed 20

Trial Duration 90

Enforcement Duration 30

Total Evict Tenant Days 140

Courts: Project Lex Mundi

Relations between landlords and tenants are regulated in Costa Rica under Law 7527, "General Law on Urban and Suburban Leasing." This law covers all leases or rentals of houses and other buildings such as commercial institutions. Law 7527 does not cover hotel rooms or bungalows, parking facilities or employee housing. The Civil Code governs farms and leases for tourism.

Short history: Recent changes in landlord and tenant law in Costa Rica

Since 17 August 1995, Law 7527 has been effective and enforceable. There was another law before that, which did not fully cover many of the issues arising in a tenant-landlord connection. Case law helped regulate many of the non-legal aspects and issues. In the near future, no change is expected.